Valuer General figures show median Adelaide house prices have soared by 25 per cent, a record

Latest Valuer General figures reveal Adelaide’s median house value has skyrocketed to $650,000. See how your suburb has changed in our interactive list.

Adelaide’s median house value has soared 25 per cent in just 12 months, record high growth that offers some consolation for homebuyers reeling from this week’s interest rate rise.

Latest Valuer General figures reveal the metropolitan area’s median home value has jumped to $650,000 – up from $600,000 just three months ago and $520,000 this time last year.

The eye-watering increase is in stark contrast to Melbourne and Sydney, where prices have cooled amid predictions the property market is about to burst its bubble.

But experts say it will take longer for the effects of the Reserve Bank’s 0.25 per cent interest rate rise – and further increases forecast this year – to play out in South Australia.

REA Group economic research manager Cameron Kusher said the RBA’s intervention to curb soaring inflation would affect house price growth but not in a manner people would expect.

“The RBA doesn’t look at individual states but at a much more macro perspective. It’s not all about housing … their edict is to fight inflation,” Mr Kusher said.

“We have started to see that house prices aren’t rising as rapidly as before but the market in Adelaide is going to cool at a slower pace than Sydney, Melbourne and Perth among the capital cities.

“House values might drop but they will still be higher than they were two years ago.

“It’s reasonable to expect that given how strong price growth has been, as interest rates rise further, there will be some price fall over the coming year or years.”

Rachel Arnott and her partner John Banister are selling their Osmond Tce home in Norwood. Homes in Norwood had the largest value increase, according to the latest Valuer General report. Picture: Matt Turner.

The Valuer General figures also show the statewide median has risen to new record levels.

House values were up 6.8 per cent for the quarter and 22.22 per cent over the past 12 months to $550,000.

Real Estate Institute SA acting chief executive Cain Cooke said increased demand and not enough available stock would put additional pressure on house prices.

“Adelaide continues to be a desirable place to live and it remains affordable in comparison to other capital cities,” Mr Cooke said.

“Overall, we had anticipated this market correction and house values to go up. We are still seeing strong demand with buyers willing to pay good money for properties.

“The increasing median price, however, will make it even more difficult for first-homebuyers and tenants to purchase their own home.”

Figures show the number of sales across South Australia dropped to 6871 in the first quarter of 2022, compared with 7846 in the last quarter of 2021.

Adelaide CBD apartment values have not fared so well, dropping 2.35 per cent for the year to $520,000 from $532,500 last year.

Of the suburbs to have recorded at least 10 sales for both the current quarter and 2021’s first quarter, Norwood houses had the largest value increase, with houses up 70.43 per cent from $997,500 to $1.7m.

Rachel Arnott and her partner John Banister have listed their three-bedroom home, 4/43 Osmond Tce, Norwood, and they are hoping to get a good return on their investment.

“We bought this home in June 2018, when we returned from Sydney,” Ms Arnott said.

“Given how the market is doing, it seems like the ideal time to sell.”

Barmera was the top performing SA town in the past 12 months, up 67.50 per cent, while Walkerville was the standout council area with house values up 52.38 per cent over the same period.